Hey All.
I've seen a lot of properties in towns within a 40 mile radius that are mainly duplexes & triplexes. These properties are are super cheap but are in bad city areas. My question is this. Is there any way to adjust
(increase) certain expenses like maintenance, vacancies,evictions, property management etc… that would make the deal worth it? Or are some properties just not worth the hassle no matter what the price? I’d have to use a property management Co. I appreciate any input. Thanx.
It all depends on your tolerance but some properties are not worth the problems. I for example would not buy a house on a block with 5 house and 4 or crack houses and the other one is the one you are looking to buy. That kind of thing. But poor people are not a valid reason to not buy.
One thing if your prpoerty does become a crack house and the police do a raid, they will hook a tank to the front door and pull the front off of your house. And neither the police nor your insurance will pay to put it back together. Crack is wack. (it goes for all drugs also)
Nah, they only do that in red states where there is a low tolerance for slimebags…when PB is from, they wouldn’t do that!
What does that mean, “bad city areas”?
Mike
I’m guessing that they are in the Springfiled/Hartford or Albany area and in the 'hood.
Keith
Yes, Mainly in Albany & Troy. they’re a little closer than Springfield. Some of the properties are cheap enough but it makes me nervous in certain parts of these cities. I think mainly because I don’t live in a city. It’s pretty rural here. But I didn’t know if there’s a way to adjust the numbers to make it work if at all… For instance, increasing the operating expenses to 60 % to 70% of the gross rents instead of the usual 50%. Or is there a cutoff point that makes the property not worth it no matter what. Thanx.